Kanwar Gupta News Today

Sales of EVs is on a growth path, led by the two-wheeler segment. Penetration of electric two-wheelers in the overall two-wheeler sales increased to about 5% in FY23, though the pace of adoption has slowed over the past few months owing to the reduction in subsidy. To offset the vehicle cost hike owing to reduction in subsidy, electric two wheeler OEMs recently introduced de-spec versions of their existing electric scooters.

Below par monsoon is the primary reason for the falling tractor sales, which were “good” in FY22 and FY23. The high base of the previous two fiscal years is also affecting growth; a large part of tractor buying is due to replacement demand.

According to FADA, the auto retail sales in June demonstrated a 10% year-on-year growth, encompassing positive performances across various vehicle categories, including 2-wheelers, 3-wheelers, passenger vehicles, tractors and commercial vehicles.

Vehicle loans outstanding increased by 22 per cent year-on-year to Rs 5.09 lakh crore in May, notwithstanding the Reserve Banks rate hike spree in 2022-23. As per the latest RBI data, the total vehicle loan outstanding climbed from Rs 3.65 lakh crore in May 2021 to Rs 4.16 lakh crore in May 2022, and further to Rs 5.09 lakh crore as of May 19, 2023.

Passenger Vehicles: As per industry estimates, PV wholesales stood at 3.27 lakh units in June this year, growing about 2% against 3.21 lakh units in June last year. However, the industry witnessed about 2% decline on a sequential basis, when compared to 3.35 lakh units dispatched in May 2023.

While challenges like supply chain issues, demand-supply dynamics, and regulatory changes play a role in shaping the auto retail outlook, experts believe that the industry is finally priming for growth.

However, players say the segment should learn to live independent of subsidies. They point out that customers are now increasingly opting for EVs over ICE vehicles.

At Maruti, enquiries for new products grew 7% in April, but bookings were below normal

Alto K10 launch today: With the new variant of the Alto, the only car to have sold 40 lakh units in the country, Maruti is aiming to gain a stronghold in the segment worst hit by inflation.

Easing supply side constraints of semiconductors as well as healthy demand led many passenger vehicle...